In the context of profit maximization, how does an increase in labor supply affect the marginal productivity of labor in a competitive market?

In a competitive market, when the supply of labor increases, it usually leads to more workers available for the same amount of work. This can cause the marginal productivity of labor to decrease. Marginal productivity refers to the additional output produced when one more worker is hired. For example, if a factory has ten workers and hires an eleventh, the added output might be less than what the first few workers contributed because the factory may become crowded or resources may be stretched thin. Therefore, as more workers join the labor force, each additional worker might contribute less to production, which can affect profit maximization for businesses.